Bond Prices Fall After New Year's Holiday

Published 7:00 pm, Wednesday, January 1, 2003

Treasury bond prices were sharply lower at midday Thursday as trading resumed after the New Year's holiday.

The price of the Treasury's 10-year note was down 1 5/8 point, or $16.25 per $1,000 in face value, around midday while its yield climbed to 4.02 percent from 3.82 percent late Tuesday. The bond market was closed Wednesday for the New Year's Day observance.

The 30-year bonds were down 2 23/32 point and yielded 4.95 percent, up from 4.78 percent late Tuesday, according to Moneyline Telerate.

Two-year Treasury notes were down 3/8 point and yielded 1.78 percent, up from 1.59 percent late Tuesday.

Yields on one-month Treasury bills rose to 1.19 percent as the discount gained 0.04 percentage points to 1.17 percent. Yields on three-month Treasury bills were 1.21 percent as the discount rose 0.01 percentage point to 1.19 percent. Six-month yields rose to 1.25 percent as the discount gained 0.03 percentage point to 1.22 percent.

Yields are the interest bonds pay by maturity, while the discount is the interest at which they are sold.